FKI plc (FKI) announces that it has agreed to acquire the business and certain assets of Skoda Electrical Machines (SEM), a Czech turbogenerator manufacturer, for a cash consideration of CZk 830 million (approx. GBP15.2 million). The acquisition is expected to be completed during April once certain asset transfers have been duly registered. The consideration will be subject to adjustment based on the actual value of inventory acquired.
SEM is a long established manufacturer of large electric motors and generators based on a freehold site in Plzen, Czech Republic, employing approximately 840 people. During the last 12 months SEM has operated as a subcontractor to FKI’s Brush Electrical Machines business (BEM) and has proven to be a reliable and high quality supplier of turbogenerators. The acquisition of SEM increases manufacturing capacity for BEM designed turbogenerators by over 30%. In addition, SEM gives FKI’s rotating machines operations the heavy manufacturing facility to enable it to expand its existing generator range from 160 MW up to 1000 MW in line with key customer requirements.
Bob Beeston, Chief Executive of FKI, commented: Rapid growth in demand for turbogenerators is set to continue. SEM means that we are now even better placed to capture this growth and meet the demands of our customers worldwide. As well as additional capacity SEM will help extend our product portfolio and enables us to enter new markets in Eastern Europe. Recent large customer orders put us firmly on track to meet our growth targets in our rapidly expanding turbogenerator business.
